Posted: December 10th, 2015
ODS 333 – OPERATIONS & LOGISTICS MANAGEMENT FALL SEMESTER , 5th EXAMINATION , Chapters 12 and 13
Professor Philip Vaccaro
ODS 333 – OPERATIONS & LOGISTICS MANAGEMENT
FALL SEMESTER , 5th EXAMINATION , Chapters 12 and 13
NAME_Due T/W, December 8th / 9th on scantron sheet
MULTIPLE CHOICE : ( select the most correct response )
- Which one of the following is an aggressive alternative for aggregate
planning?
- use seasonal inventories to buffer the manufacturing process from
variations in customer demand.
- offer complementary products or services with contra-cyclical demand
requirements.
- use overtime and undertime to change workforce levels.
- use subcontracting to overcome short-term capacity shortages.
- Which of the following factors is (are) NOT included in ordering cost ?
- bill paying.
- obsolescence.
- purchasing department overhead costs.
- inspecting incoming inventory.
- development and authorization of purchase orders.
- Possible decision variables that should be considered for aggregate plans
include:
- equipment rental.
- extra labor shifts.
- backordering.
- all of the above.
- none of the above.
-2-
- Regarding the master production schedule (MPS) :
- the external suppliers are sent copies of the MPSs in advance.
- the time horizon of the MPSs must equal the time horizon of the
selected aggregate plan.
- the capacity requirements of the MPSs must equal or exceed the available capacity of the selected aggregate plan.
- all of the above.
- none of the above.
- Which of the following statements regarding the economic order quantity
( EOQ ) is true?
- if materials handling costs were to drop, the inventory carry cost per unit of an item would decrease and the EOQ would also decrease.
- the EOQ model assumes a variable demand pattern.
- the EOQ model combines several different item orders to the same supplier.
- if an order quantity is larger than the EOQ, the annual holding (carry)
cost for inventory exceeds the annual ordering cost.
- In the basic EOQ model, if lead time increases from 3 to 6 days, the EOQ
will:
- double.
- increase, but not double.
- remain the same.
- decrease by a factor of ‘2’.
- Consider a piecemeal replenishment situation where the production rate is
100 units per day, the demand (consumption) rate is 4 units per day, and the
economic production lot size is 500 units. Which of the following statements
is true?
- the average inventory per cycle is 250 units.
- the average inventory per cycle is greater than 250 units.
- the rate of buildup in inventory during the production cycle is
less than 100 units per day.
- the rate of buildup in inventory during the production cycle is greater
than, or equal to 400 units per day.
-3-
- An item experiences an annual demand of 7,200 units. It costs $8.00 to hold
the item in inventory for one year and $16.00 to place an order. If the EOQ
model is used, what is the time between orders?
- less than 1 week.
- greater than 1 week but <= 2 weeks.
- greater than 2 weeks but <= 3 weeks.
- greater than 3 weeks.
- Annual demand for a product is 1,600 units, and the holding cost is $2.00 per
unit per year. The cost of setting up the production line is $25.00 . There are
200 working days per year. The production manager decided to produce 200
units each time she started production. If it takes her 4 days to produce the
200 units, what was her production rate?
- 80 units per day.
- 60 units per day.
- 50 units per day.
- 100 units per day.
- 40 units per day.
- Judith Thompson is the manager of the student center cafeteria. She orders
frozen pizzas and bakes them on the premises. She anticipates a weekly
demand of ten (10) pizzas. The cafeteria is open 45 weeks a year, 5 days a
week. The ordering cost is $15.00 and the holding cost is $0.40 per pizza per
year. What is the optimal number of pizzas Judith should order?
- 184
- 9
- 5
- 28
- none of the above.
- Given the data in the previous question, the pizza vendor has a four (4) day
leadtime, and Judith wants to maintain 1 pizza for safety stock. What is the
least cost reorder point ?
- 10
- 8
- 4
- 9
- none of the above.
-4-
- The annual demand for a product is 1,000 units. The company orders 200 units
each time an order is placed. The leadtime is six (6) days. There are 250 work-
ing days per year. If the reorder point is 50 units, what safety stock are they
using ?
- 22
- 4
- 26
- 28
- none of the above.
- A manager is using the normal distribution to determine the safety stock for a
product. The z-value of 2.33 would be associated with what service level ?
- 95%
- 97.5%
- 98%
- 99%
- none of the above.